Two people with direct knowledge of the negotiations told ET that the deal is “moving quickly toward fruition” and will result in the combined behemoth owning more than 1,200 screens. The number of screens run by the next biggest entity, INOX Leisure, is just about half of what the merged company would operate.
‘Finer Details being Worked Out’
“While the finer details are being worked upon, Cinepolis will be the largest shareholder in the merged company, with around a 20% stake,” one of the two industry sources cited above told ET. “PVR promoters will own between 10% and 14%, but Ajay Bijli (CMD of PVR) will have complete management control for at least three years. Cinepolis will have board seats in the merged company.”
Another executive said the merger could be announced by the end of March.
“Both parties are moving quickly,” said the second executive cited above. “This merger will not require approval from the Competition Commission of India as the combined revenues of the two companies are well below Rs 1,000 crore due to Covid-led disruptions.”
First Phase of Consolidation
The first phase of consolidation in India’s film exhibition industry began in the new millennium when a large number of single-screen facilities failed to match up to well-capitalised corporates that ran multiple screens – and films – at the same physical facility. Hundreds of single-screen facilities have since quit the industry that is now dominated by organised exhibitors such as PVR or INOX. That phase of consolidation coincided with the first expansion drive in organised film exhibition, with Anil Ambani buying out Adlabs films in 2005 and acquiring screens rapidly to launch Big Cinemas.
To be sure, PVR’s earlier acquisition of DT Cinemas from DLF had to undergo public scrutiny by the competition watchdog.
Ultimately, the panel approved the acquisition, subject to the exclusion of two properties from the proposed combination.
Email queries sent to PVR and Cinepolis India remained unanswered.
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